QUESTION 5 Symmetry-Integration Diagram Symmetry of shocks Cities Neighborhoods Very well Regions within a within a city integrated within a region and/or very 6 Net benefits of country . ...... fixing are positive similar . .. . . . . above the FIX line. countries Net benefits of fixing are negative below the FIX line. Well integrated and/or Poorly integrated similar FIX and/or dissimilar countries countries Market integration Use the symmetry-integration diagram as in Figure 19-4 (above) to explore the evolution of international monetary regimes from 1870 to 1939-that is, during the rise and fall of the gold standard. From 1870 to 1913, world trade flows doubled in size relative to GDP, from about 10% to 20%. Many economic historians believe this was driven by exogenous declines in transaction costs, some of which were caused by changes in transport technology. How would you depict this shift for a pair of countries in the symmetry-integration diagram that started off just below the FIX line in 1870? Use the letter A to label your starting point in 1870 and use B to label the end point in 1913